Hospitality firm, Ikeja Hotel Plc has witnessed a decline in its earnings for the first six months of the year, ended June 30, 2020.
This was disclosed in the unaudited group accounts forwarded by the firm to the Nigerian Stock Exchange (NSE).
Ikeja Hotel recorded a 50% revenue decline of N2.9bn for the first six months of 2020 compared to the N5.8bn recorded in the first half of 2019.
The coy recorded N177.4m as gross profit in the first half of the year as against N1.4bn recorded in the corresponding period of 2019, representing 87.7% drop.
Part of the statement read:
“The Loss after Tax of ₦785.9 million recorded by the group in the half-year Financial Statements for the period ended June 30, 2020, was due to the negative impact of the COVID-19 pandemic on the hospitality industry”.
“The Company will respond appropriately to reduce this negative impact significantly and improve the fortunes of the Company as the Government further relaxes COVID-19 pandemic regulations and allows resumption of International flights.”
It recorded an operating loss of 356m for the first six months of the year, compared to an operating profit of N728m in the first half the year.
It also recorded a loss before tax of 777m in the first half of the year, compared to a profit of N341m in a similar period of 2019.
More checks in the financial statements showed that the group recorded less revenue for rooms booked for the last six months.
The results showed that the firm recorded N1.7bn for the first six months of 2020, against N3.5bn recorded in the first six months of the previous year.
The NSE had in November 2016 suspended trading in the shares of the company “to safeguard the investments of shareholders of Ikeja Hotel Plc following the continued dispute between the major shareholders which had negatively impacted on the company’s governance structure”.
In May 2018, it was reported that the Nigerian capital market apex regulator, the Security and Exchange Commission, dissolved the Board of Directors of the company due to the unresolved internal crisis involving some majority shareholders of the company.
Trading in the shares of Ikeja Hotel Plc resumed later following the lifting of the suspension placed on it by the Nigerian bourse.